The Samsung Galaxy S7 costs only $255 to manufacture

The unsubsidized price of the Galaxy S7 in US is $670 and according to an American industry research firm, that price tag has a profit margin of $415 on each handset! The research firm known as IHS published a report recently which shows that Samsung manufactures each unit of the S7 at a price of $255, inclusive of everything.

According to IHS, the Qualcomm Snapdragon 820 chipset that is powering Samsung's 2016 flagship devices in the US (the international variant is powered by Samsung's own Exynos 8890), is the S7's costliest part. Samsung however, buys the chipset at roughly $62 a piece. The 12-megapixel camera at the back of the S7 is its second most expensive part and it costs Samsung around $13.80 per module and an additional $5 for assembling and installing each unit.

Everything else like the glass back panel, the Super AMOLED display, the aluminum frame, internal storage, RAM, front camera, sensors and microphones come within a budget of $174.30. If this report has any truth to it, then Samsung's margin of profit on the Galaxy S7 is just astounding! It makes you wonder how much profit the South Korean manufacturer is making on every S7 that it sells outside the US, where it uses its own Exynos 8890 chipset which should cost even less than the Snapdragon 820.

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